Operating margin is defined as Operating Profit divided by Revenue (or Sales).
<math>Operating\ Margin=Operating\ Profit / Revenue</math>
Operating margin is expressed as a percent of revenue and is the amount of profit you have for each $1 in sales after deducting all expenses other than interest and taxes.
Related Fool Articles
Related Community Blogs
Recent Mentions on Fool.com
- U.S. Bancorp CEO Predicts a "Tsunami" of Economic Activity Before Federal Reserve's Interest Rate Hi
- A-10 Warthog "Treason" Comments Cost Air Force General His Job
- Rite Aid?s Incredible Turnaround: Beyond the Numbers
- Is This Giant Miner or the Company it's Spinning Off a Better Investment?
- 3 Things You Need to Know About Whole Foods Market Inc.
- 3 of the Best Hedge Funds